By Svenja O’Donnell - Dec 14, 2010 7:30 PM GMT+0800
U.K. Housing Gauge Stayed Close to 18-Month Low November
The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 44 percentage points, compared with minus 49 points in October. Economists Photographer: Chris Ratcliffe/Bloomberg
A U.K. housing-market gauge stayed close to the lowest in 18 months in November as demand for homes waned, the Royal Institution of Chartered Surveyors said.
The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 44 percentage points, compared with minus 49 points in October, the London- based group said in an e-mailed report today. Economists forecast a decline to minus 50 points, according to the median of 16 predictions in a Bloomberg News survey.
“Fear over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers’ minds, with many deciding to ‘wait and see’ until the new year,” RICS spokesman Ian Perry said in a statement. “Meanwhile, the lack of mortgage finance continues to deter first-time buyers.”
Recent data have shown a mixed picture of the housing market. While the Bank of England kept its benchmark interest rate at a record low this month, making loan repayments cheaper, mortgage approvals fell to an eight month-low in October. Consumers are also bracing themselves for the deepest spending cuts since World War II, leading to the loss of 330,000 jobs.
A gauge of new buyer enquiries dropped to minus 18 in November from minus 12, RICS said. A measure showing the number of new property listings was unchanged at minus 4.
An index of prices in London was at minus 32 percent in November, compared with minus 49 percent the previous month.
‘Downward Spiral’
“The housing market is only a shadow of itself in 2007,” Jeremy Dell, a real-estate agent at JJ Dell & Co. in Shropshire, England, said in the report. “The economics indicate a long downward spiral.”
The U.K. has at least seven indicators of the housing market, which have shown divergence in recent months. Acadametrics Ltd. and LSL Property Services Plc said on Dec. 10 that house prices increased to the highest in more than two years in November. Mortgage lender Halifax said prices fell 0.1 percent that month, while the Department for Communities and Local Government said today that prices declined by that amount in October.
Banks are still curbing credit. Lenders granted 47,185 loans to buy homes in October, compared with 47,369 in September, the Bank of England said on Nov. 29. That’s less than half the level at the peak of the housing boom in 2007.
Still, the number of mortgage holders in arrears fell 11 percent in the third quarter from a year earlier, the Financial Services Authority said today. The increase in the number of new arrears cases is also easing. There were 36,600 such cases in the quarter, a drop of 19 percent on the year.
The central bank’s Monetary Policy Committee last week left its benchmark interest rate unchanged at a record low 0.5 percent and its emergency bond-purchase plan at 200 billion pounds ($317 billion).
To contact the reporter on this story: Svenja O’Donnell in London at sodonnell@bloomberg.net
To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net
Showing posts with label World Real Estate. Show all posts
Showing posts with label World Real Estate. Show all posts
Tuesday, December 14, 2010
Sunday, November 14, 2010
Rightmove UK Nov House Asking Prices See Sharp Fall..largest monthly drop since December 2007
15-Nov-2010
------------------------------------------------------------------------
The Christmas slowdown in the house market has come early this
year, with UK house asking prices suffering their largest monthly
drop since December 2007 as both buyers and sellers wait to see how the
market develops, according to Rightmove with its latest House Price
Index Survey. Rightmove's House Price Index found asking prices down
3.2% on the month and up 1.3% on the year in November, having risen
2.9% on the year in October.
------------------------------------------------------------------------
The Christmas slowdown in the house market has come early this
year, with UK house asking prices suffering their largest monthly
drop since December 2007 as both buyers and sellers wait to see how the
market develops, according to Rightmove with its latest House Price
Index Survey. Rightmove's House Price Index found asking prices down
3.2% on the month and up 1.3% on the year in November, having risen
2.9% on the year in October.
Friday, November 12, 2010
British Columbia Real Estate Association (BCREA) released its Fall Housing Forecast 2010
Moderate Rise in Home Sales Forecast
BCREA Fall Housing Forecast 2010
Vancouver, BC – November 10, 2010. The British Columbia Real Estate Association (BCREA) released its Fall Housing Forecast 2010 today.
BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 12 per cent from 85,028 units in 2009 to 74,950 units this year, before increasing 6 per cent to 79,700 units in 2011.
"Consumers are responding to a double-dip in mortgage interest rates," said Cameron Muir, BCREA Chief Economist. "While housing demand waned in the province through the spring and summer, the added purchasing power from low borrowing costs combined with gradual improvement in the BC economy has trended home sales higher in recent months."
"A moderate increase in BC home sales is expected next year coinciding with employment and population growth," added Muir. "However, the 79,700 unit sales that are forecast for 2011 are well below the ten-year average of 85,500 units." A record 106,300 MLS® residential sales were recorded in 2005.
The average MLS® residential price is forecast to climb 7 per cent to $498,500 this year and remain relatively unchanged in 2011, albeit declining by 1 per cent to $495,600.
BCREA Fall Housing Forecast 2010
Vancouver, BC – November 10, 2010. The British Columbia Real Estate Association (BCREA) released its Fall Housing Forecast 2010 today.
BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 12 per cent from 85,028 units in 2009 to 74,950 units this year, before increasing 6 per cent to 79,700 units in 2011.
"Consumers are responding to a double-dip in mortgage interest rates," said Cameron Muir, BCREA Chief Economist. "While housing demand waned in the province through the spring and summer, the added purchasing power from low borrowing costs combined with gradual improvement in the BC economy has trended home sales higher in recent months."
"A moderate increase in BC home sales is expected next year coinciding with employment and population growth," added Muir. "However, the 79,700 unit sales that are forecast for 2011 are well below the ten-year average of 85,500 units." A record 106,300 MLS® residential sales were recorded in 2005.
The average MLS® residential price is forecast to climb 7 per cent to $498,500 this year and remain relatively unchanged in 2011, albeit declining by 1 per cent to $495,600.
Wednesday, November 3, 2010
Australian Real Estate-"Don't Buy- Prepare to Sell Signal "
Editors Note:
Those who have been reading my newsletter over the past 30 years are well aware that I have made some very controversial but very accurate predictions for major real real estate markets.
Most recently in 2002 I predicted and participated in the bull market in Bali Real Estate caused by new foreign demands.
In 2006 I predicated the world wide collapses ( except Bali) in real estate prices.
Two weeks ago after returning from a week long trip to Sydney I said real estate prices were too high and " I would not be buying ".
After this weeks unanticipated move in Australian interest rates and a rise above par for the Aussie dollar last night I am more convinced than ever that the bubble is about to burst, primarily in four major cities Pert, Melbourne and Sydney, & Brisbane .
"Bubble is about to burst, primarily in four major cities Pert, Melbourne and Sydney, & Brisbane .
Australian Real Estate News:
Don't take my word for it . Read the articles below I found after doing a search for " Sydney Real Estate Demand October 2010"
According to the web site zincip "THE median Sydney house price has more than tripled over the past two decades, but prices in the east and inner west have quadrupled, mirroring and compounding a growing income divide across the city. Overall, Sydney’s median house price rose 233 per cent between the June quarter of 1993 and the June quarter of this year, from $188,050 to $626,444, according to figures from the Fairfax-owned Australian Property Monitors.". From http://zincip.biz/2010/10/08/sydney-property-price-home-price-rises-mirror-the-citys-income-divide/
The problem is rental income is not keeping up with rising prices creating negative cash flows which is when wise real estate investors stop buying and start looking for the exit sign.
According to www.smartcompany.com.au Monday, 11 October 2010 "Auctions market slows in Melbourne as demand falls away:
The Melbourne auctions market is beginning to slow as the Spring selling season heats up, and inner-city Sydney is now becoming one of the best-performing markets in the country, real estate experts say.
The Real Estate Institute of Victoria claims Melbourne recorded a 68% clearance rate this past weekend, with 708 properties on the market. The median auction price for houses was over $700,000, it says, well above RP Data's median for the city at $470,000.The market is continuing to slow. It's not collapsing, but it's a slower market than Sydney. I think house prices in Melbourne have come to a halt, and they have basically been flat for awhile."
"I think house prices in Melbourne have come to a halt"
"The only thing we can all agree on is that listings have increased, jumping up from the football period. I expect listings to increase from this point forward, and we can expect this type of sales activity over the next few months to December." The REIV also notes that increase, saying that, "the current performance of the market is in stark contrast to this time last year when there was 598 auctions and a clearance rate of 82%.""A year ago interest rates were still at record lows which highlights the importance of monetary policy on the real estate market."
"Melbourne isn't doing as well as Sydney," Christopher says. "This type of activity can be expected in Sydney from here until the end of the year. Melbourne isn't as doing as well as Sydney at all, but is doing better than Brisbane. Activity there is deteriorating due to over-supply."
However, activity continues to deteriorate in Brisbane due to oversupply. The city recorded only four sales out of 22, according to APM, with sales reaching just $684,000, while Adelaide recorded a 68% clearance rate, with 19 properties sold, with total sales at $5.1 million. From http://www.smartcompany.com.au/property/20101011-auctions-market-slows-in-melbourne-as-demand-falls-away-experts.html
House prices flatline in September:
From http://www.smartcompany.com.au/Friday, 29 October 2010 11:01
Australia’s housing market continues to tread water, with the latest figures from RP Data and Rismark showing house prices increased just 0.1% in September, meaning house prices have basically not risen since May.
The data shows the national median city house price is $406,500, which is $9500 lower than at the end of the June quarter.
During the month, the best-performed market was Sydney, where prices increased 0.9% during the month, compared to a rise of 0.5% in Melbourne and 0.7% in Brisbane.
Prices in the under-performing Perth market dropped 1.9% in September, while prices in Darwin were down 1.1%, down 0.8% in Adelaide, and down 0.3% in Canberra. Hobart prices were not available.
Rismark managing director Christopher Joye says price are likely to track sideways for the rest of 2010, but warns predictions of further rate rises could put further pressure on prices in the short to medium term.
“Home loan rates will eventually start increasing, with the prospect that the peak mortgage rate could converge to close to 9%, which is more than 1.5% higher than the current average variable mortgage rate of 7.4%.
“Our analysis suggests that a substantial increase in rates would put some downward pressure on dwelling prices. Household balance-sheets will be supported by a strong labour market and robust income growth.
“But let’s be clear: it is now just a matter of time before the RBA and/or the banks raise rates again. New borrowers taking out loans should be prepared to service rates 1.5% higher than what they are currently paying.”
However, lack of price growth does create some opportunities for investors, according to RP Data senior analyst Cameron Kusher.
“Early signs suggest that rental rates are once again improving, listings are at above-average levels, and leading indicators such as time on market and vendor discounting are creeping up,” he says.
“For those active in the market there is increasing scope for price negotiation and less competition among buyers with an above-average number of properties for sale. These conditions are likely to afford opportunities to purchase property at more competitive prices.”
Will property prices keep moving sideways? A SmartCompany Q&A
Tuesday, 02 November 2010 10:34 James Thomson
So prices are now going sideways. Is that likely to continue?
Residex chief Christopher Joye argues house prices have been closely tracking disposable incomes, and says prices are likely to remain flat for at least the rest of the year. That view is supported by recent auction results, which have been solid but not spectacular, and housing finance data, which has been weak for the last six months.
What about into 2011 and beyond?
For Joye, the outlook depends on interest rates. He's telling buyers to be prepared for rates to rise at least 1.5% in the early part of 2011, which he says is likely to put "downwards pressure" on prices.
Price falls?
Probably not. Joye agrees with other analysts such as ANZ's Paul Braddick that a strong labour market and growth in disposable income should help put a floor under house prices. Braddick also suggests the lingering housing shortage – he puts it at 30,000 homes a year – will also help prevent any big price falls.
But how long will the market stagnate?
It's just too hard to say right now. Westpac's Matthew Hassan and Macquarie's Rod Cornish are tipping prices could continue to track sideways for one to two years, as the cooling process continues.
However, this bit of breathing space isn't such a bad thing – it will help dispel any bubble fears, and allow household budgets to strengthen further.
From http://www.smartcompany.com.au/property/20101102-will-property-prices-keep-moving-sideways-a-smartcompany-q-a.html
There you have it from several sources .
As with my past predictions on real estate collapses in Hawaii and world wide I will probably lose some friends and readers by my cautious signal on Australian real estate.
Few will give me credit for being one of the first to predict a slow down or downturn and even fewer will remember I made this predictions in years to come.
So I ask myself should should I stick my neck out once again. The answer is simple I tell it like I see it and I am not always going to be right. I have over a 87 % accuracy this year on my January predictions for most major markets .
Just a few hours ago I was walking down Sanur Beach and ran into a client and prominent Australian real estate broker.
I mentioned the rising Aussie dollar and that I was getting ready to issue a sell signal for Australian cities. He stated " Your right mate. I was just talking to my real estate mate in Sydney and he said " might just as well stay in Bali and go surfing as the market is dead here". Who says there aren't honest Realtors.
What to Do:
Simple if your thinking about buying real estate in the four major Australian cities don't, unless it has positive cash flow. If you own these properties and have a handsome profit, sell and buy where your Aussie dollar is buying more such as Bali where there has not been a bubble. If you own the home you live in in Australia simply hold onto it because even is it does drop 20 % to 40 % it will be more valuable 10 years from now.
At any rate I hope you don't kill the messenger, me.
Cheers,
Lawrence
Thursday, October 14, 2010
Singapore Property Curbs Seen Hurting State-Built Housing Most
Singapore Property Curbs Seen Hurting State-Built Housing Most
By Joyce Koh and Kristine Aquino - Oct 15, 2010 7:45 AM GMT+0800
Singapore Property Curbs
Singapore is trying to head off the kind of property bubble that fueled recessions in the U.S. and Europe, while keeping housing affordable for the 80 percent of locals who live in flats built by the state’s Housing & Development Board. Photographer: Munshi Ahmed/Bloomberg
Luar Yew Teng and his fiancee paid S$405,000 ($313,000) for their four-room Singapore apartment in June, 14 percent more than the official valuation, as prices broke the records of 1996.
Now, they wish they hadn’t. In August, the government restricted financing and raised duties on some home sales, its third round of measures to cool the market in a year. Analysts including Donald Han, managing director of real estate adviser Cushman & Wakefield Pte, say owners of government-built housing like Luar will lose the most as prices fall.
“There’s a lot of heartache because we bought at the peak,” said Luar, 27, who’s planning a traditional Chinese wedding in November after buying his first home. “If we knew this was coming, we would have waited.”
Singapore is trying to head off the kind of property bubble that fueled recessions in the U.S. and Europe, while keeping housing affordable for the 80 percent of locals who live in flats built by the state’s Housing & Development Board. Analysts predict the measures will widen the gap with privately built condos, making it harder for locals to upgrade in a country where property accounts for almost half of private wealth.
Prices of HDB flats may drop as much as 10 percent in six months, while private condo prices may gain up to 7 percent, according to property analysts polled by Bloomberg.
“Who these rules will hit the most are people who have little savings and who live from day-to-day,” said Mohamed Ismail, chief executive officer of home broker PropNex Singapore. “They’re mostly those who live in public housing.”
Bigger Down-Payment
In August, the government increased down-payments for second mortgages and extended the stamp duty to residential property sold within three years. The aim is to bring real- estate prices, which surged 38 percent in the second quarter from a year earlier, more in line with the pace of economic growth. The government forecasts economic expansion of as much as 15 percent this year.
“This is targeted at the HDB and mass market, where we’ve seen continuous price increases which have exceeded previous peaks,” said Han of Cushman & Wakefield.
Four out of six analysts polled by Bloomberg expect prices for HDB flats to drop in the next six months, while four out of seven predict private apartment prices will gain.
The government has been trying to slow the increase in home prices for a year, with earlier measures banning developers from absorbing interest payments for flats under construction and stopping interest-only loans for some projects.
‘Scratching the Surface’
“The previous measures were only scratching the surface,” said Chua Chor Hoon, head of DTZ’s Southeast Asia Research. “The recent measures are more impactful because they really hurt people’s cash outflow.”
HDB resale transactions dropped 50 percent the week after the new rules were introduced, according to Ismail at PropNex, who said people have been shocked into a “wait-and-see attitude.” He expects cash premiums paid for HDB flats to drop by half to about S$25,000 by the end of the year.
The Straits Times Real Estate Index has risen 8.6 percent since the government’s Aug. 30 announcement, compared with a 8.7 percent gain in the benchmark Straits Times Index.
CapitaLand Ltd., Southeast Asia’s biggest developer, expects Singapore’s home prices to fall “a little” with the cooling measures, the Straits Times newspaper reported Sept. 23, citing Chief Executive Officer Liew Mun Leong. UBS AG said Sept. 3 it was “turning cautious” on Singapore’s property developers.
Bubble Danger
A Chinese national paid a record S$36 million in June for a private bungalow in Sentosa Cove. The following month, in the HDB market, a Singaporean couple paid S$1.1 million for a Bishan flat, S$200,000 more than the official valuation.
“There was a danger of a property bubble forming,” Mah Bow Tan, the island’s national development minister, told parliament on Sept. 15.
Luar, who earns about S$2,500 a month as a civil servant, bought his 85-square-meter HDB flat in Bishan in June for S$50,000 more than the value appraised by a professional licensed by the housing board.
Banks are only allowed to lend up to 80 percent of the appraised value, so the buyer has to pay the rest in cash or by drawing on pension funds. Any premium over the valuation has to be paid in cash. Since the August announcement, buyers who hold more than one mortgage can now only borrow up to 70 percent of a property’s appraised value.
‘Very Hot’
Singapore subsidizes new HDB flats to help citizens get a start on the property ladder. When an HDB flat is resold, the price is decided by the seller and buyer.
“The market was very hot,” said Luar, who bought his apartment from a Chinese investor who also owned a private condominium in Singapore. “All our savings are wiped out after we bought our flat.”
Shawn Ho, 34, was one who made the jump from public to private apartment before the new rules. He sold his HDB flat on Old Airport Road for S$500,000, including a S$60,000 premium, and bought a private apartment for S$688,000 in August.
“The market was hot and we wanted to change,” said Ho, owner of a food and beverage business, who moved with his wife and four-year-old daughter. “With the new rules, there’s no need to worry about a quick drop.”
The government’s action to try to avoid a bubble is a lesson to speculators and buyers not to overspend on real estate, said Tan Tiong Cheng, the chairman of property agent Knight Frank. At the time of the new measures, the government said price levels had exceeded the peak reached in the second quarter of 1996.
“The rising prices were infringing into public housing,” said Tan. “The measures remind investors that if they don’t have money, don’t buy.”
To contact the reporter on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at plagerkranser@bloomberg.net; Lars Klemming at lklemming@bloomberg.net
http://www.bloomberg.com/news/2010-10-14/singapore-property-curbs-hit-first-time-owners-most-as-prices-seen-falling.html
By Joyce Koh and Kristine Aquino - Oct 15, 2010 7:45 AM GMT+0800
Singapore Property Curbs
Singapore is trying to head off the kind of property bubble that fueled recessions in the U.S. and Europe, while keeping housing affordable for the 80 percent of locals who live in flats built by the state’s Housing & Development Board. Photographer: Munshi Ahmed/Bloomberg
Luar Yew Teng and his fiancee paid S$405,000 ($313,000) for their four-room Singapore apartment in June, 14 percent more than the official valuation, as prices broke the records of 1996.
Now, they wish they hadn’t. In August, the government restricted financing and raised duties on some home sales, its third round of measures to cool the market in a year. Analysts including Donald Han, managing director of real estate adviser Cushman & Wakefield Pte, say owners of government-built housing like Luar will lose the most as prices fall.
“There’s a lot of heartache because we bought at the peak,” said Luar, 27, who’s planning a traditional Chinese wedding in November after buying his first home. “If we knew this was coming, we would have waited.”
Singapore is trying to head off the kind of property bubble that fueled recessions in the U.S. and Europe, while keeping housing affordable for the 80 percent of locals who live in flats built by the state’s Housing & Development Board. Analysts predict the measures will widen the gap with privately built condos, making it harder for locals to upgrade in a country where property accounts for almost half of private wealth.
Prices of HDB flats may drop as much as 10 percent in six months, while private condo prices may gain up to 7 percent, according to property analysts polled by Bloomberg.
“Who these rules will hit the most are people who have little savings and who live from day-to-day,” said Mohamed Ismail, chief executive officer of home broker PropNex Singapore. “They’re mostly those who live in public housing.”
Bigger Down-Payment
In August, the government increased down-payments for second mortgages and extended the stamp duty to residential property sold within three years. The aim is to bring real- estate prices, which surged 38 percent in the second quarter from a year earlier, more in line with the pace of economic growth. The government forecasts economic expansion of as much as 15 percent this year.
“This is targeted at the HDB and mass market, where we’ve seen continuous price increases which have exceeded previous peaks,” said Han of Cushman & Wakefield.
Four out of six analysts polled by Bloomberg expect prices for HDB flats to drop in the next six months, while four out of seven predict private apartment prices will gain.
The government has been trying to slow the increase in home prices for a year, with earlier measures banning developers from absorbing interest payments for flats under construction and stopping interest-only loans for some projects.
‘Scratching the Surface’
“The previous measures were only scratching the surface,” said Chua Chor Hoon, head of DTZ’s Southeast Asia Research. “The recent measures are more impactful because they really hurt people’s cash outflow.”
HDB resale transactions dropped 50 percent the week after the new rules were introduced, according to Ismail at PropNex, who said people have been shocked into a “wait-and-see attitude.” He expects cash premiums paid for HDB flats to drop by half to about S$25,000 by the end of the year.
The Straits Times Real Estate Index has risen 8.6 percent since the government’s Aug. 30 announcement, compared with a 8.7 percent gain in the benchmark Straits Times Index.
CapitaLand Ltd., Southeast Asia’s biggest developer, expects Singapore’s home prices to fall “a little” with the cooling measures, the Straits Times newspaper reported Sept. 23, citing Chief Executive Officer Liew Mun Leong. UBS AG said Sept. 3 it was “turning cautious” on Singapore’s property developers.
Bubble Danger
A Chinese national paid a record S$36 million in June for a private bungalow in Sentosa Cove. The following month, in the HDB market, a Singaporean couple paid S$1.1 million for a Bishan flat, S$200,000 more than the official valuation.
“There was a danger of a property bubble forming,” Mah Bow Tan, the island’s national development minister, told parliament on Sept. 15.
Luar, who earns about S$2,500 a month as a civil servant, bought his 85-square-meter HDB flat in Bishan in June for S$50,000 more than the value appraised by a professional licensed by the housing board.
Banks are only allowed to lend up to 80 percent of the appraised value, so the buyer has to pay the rest in cash or by drawing on pension funds. Any premium over the valuation has to be paid in cash. Since the August announcement, buyers who hold more than one mortgage can now only borrow up to 70 percent of a property’s appraised value.
‘Very Hot’
Singapore subsidizes new HDB flats to help citizens get a start on the property ladder. When an HDB flat is resold, the price is decided by the seller and buyer.
“The market was very hot,” said Luar, who bought his apartment from a Chinese investor who also owned a private condominium in Singapore. “All our savings are wiped out after we bought our flat.”
Shawn Ho, 34, was one who made the jump from public to private apartment before the new rules. He sold his HDB flat on Old Airport Road for S$500,000, including a S$60,000 premium, and bought a private apartment for S$688,000 in August.
“The market was hot and we wanted to change,” said Ho, owner of a food and beverage business, who moved with his wife and four-year-old daughter. “With the new rules, there’s no need to worry about a quick drop.”
The government’s action to try to avoid a bubble is a lesson to speculators and buyers not to overspend on real estate, said Tan Tiong Cheng, the chairman of property agent Knight Frank. At the time of the new measures, the government said price levels had exceeded the peak reached in the second quarter of 1996.
“The rising prices were infringing into public housing,” said Tan. “The measures remind investors that if they don’t have money, don’t buy.”
To contact the reporter on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at plagerkranser@bloomberg.net; Lars Klemming at lklemming@bloomberg.net
http://www.bloomberg.com/news/2010-10-14/singapore-property-curbs-hit-first-time-owners-most-as-prices-seen-falling.html
Tuesday, September 21, 2010
The number of homes changing hands in the UK has halved since August 2007
UK PRESS: The number of homes changing hands in the UK has halved since
August 2007, the Telegraph reports. Around 85,000 properties worth more
than stg40,000 were sold during the month, down from 90,000 in July,
according to HM Revenue & Customs. The figures highlight the current
subdued state of the housing market and the level was less than half the
162,000 homes that were sold in August 2007.
From Market News International
August 2007, the Telegraph reports. Around 85,000 properties worth more
than stg40,000 were sold during the month, down from 90,000 in July,
according to HM Revenue & Customs. The figures highlight the current
subdued state of the housing market and the level was less than half the
162,000 homes that were sold in August 2007.
From Market News International
Monday, September 20, 2010
Canadian Housing Sales Expected To Slow Down In Second Half Of 2010
Sales of existing properties in Canada improved in August with the latest figures showing that activity increased 4.1% in August, the first monthly rise since March.
The data from the Canadian Real Estate Association (CREA) shows that activity in the real estate market increases most in Ontario and British Columbia, with monthly gains in these two provinces accounting for most of the improvement in national sales activity in August.
Seasonally adjusted sales activity either increased or remained stable in over half of all local markets across Canada, the report also showed. And year to date transactions are up 2.2% compared to the first eight months of last year.
Activity rose sharply over the second half of 2009 and reached levels that are unlikely to be matched in the final four months of 2010, so year to date comparisons are forecast to turn down in the coming months. CREA is warning that the market is expected to cool in the rest of the year.
The number of new residential listings on Canadian MLS® Systems also edged up 1.9% on a seasonally adjusted basis in August compared to the previous month. Despite having edged slightly higher in all provinces except Alberta, new listings remain 16% below the peak reached last April on a national basis.
The average price of a home sold last month was $324,928, which is on par with the same month last year at $324,843. Average home prices eased slightly in Alberta and New Brunswick in August, but gains in every other province exceeded the national increase.
Average prices rose or were stable in nearly two thirds of all local markets on a year over year basis, but increases are shrinking in Canada’s most active and priciest markets.
The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and measures the balance between housing supply and demand. It stood at 6.9 months at the end of August 2010 on a national basis, which is down slightly from the seven months of inventory at the end of July 2010.
The seasonally adjusted number of months of inventory also stood at 6.9 months at the end of August on a national basis. This is down from 7.3 months at the end of July, and marks the first month over month decline since last November.
‘Rising interest rates and a projected slowdown in job growth mean that the Canadian housing market is expected to continue to cool. This is overlooked in recent commentary that suggests further changes to mortgage regulations may be needed. A further tightening of regulations could negatively impact Canada’s softening housing market and consumer confidence,’ said Georges Pahud, president of CREA.
High sales activity late last year and earlier this year borrowed from sales this summer and will continue do so over the coming months, according to Gregory Klump, CREA’s chief economist.
‘This makes the return to more normal levels of sales activity look like a steep downward trend. The hangover from accelerated home purchases is likely to persist over the rest of the year. Although economic and job growth are expected to be tepid, they will continue to support housing markets,’ he added.
Source: http://www.nuwireinvestor.com/
The data from the Canadian Real Estate Association (CREA) shows that activity in the real estate market increases most in Ontario and British Columbia, with monthly gains in these two provinces accounting for most of the improvement in national sales activity in August.
Seasonally adjusted sales activity either increased or remained stable in over half of all local markets across Canada, the report also showed. And year to date transactions are up 2.2% compared to the first eight months of last year.
Activity rose sharply over the second half of 2009 and reached levels that are unlikely to be matched in the final four months of 2010, so year to date comparisons are forecast to turn down in the coming months. CREA is warning that the market is expected to cool in the rest of the year.
The number of new residential listings on Canadian MLS® Systems also edged up 1.9% on a seasonally adjusted basis in August compared to the previous month. Despite having edged slightly higher in all provinces except Alberta, new listings remain 16% below the peak reached last April on a national basis.
The average price of a home sold last month was $324,928, which is on par with the same month last year at $324,843. Average home prices eased slightly in Alberta and New Brunswick in August, but gains in every other province exceeded the national increase.
Average prices rose or were stable in nearly two thirds of all local markets on a year over year basis, but increases are shrinking in Canada’s most active and priciest markets.
The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and measures the balance between housing supply and demand. It stood at 6.9 months at the end of August 2010 on a national basis, which is down slightly from the seven months of inventory at the end of July 2010.
The seasonally adjusted number of months of inventory also stood at 6.9 months at the end of August on a national basis. This is down from 7.3 months at the end of July, and marks the first month over month decline since last November.
‘Rising interest rates and a projected slowdown in job growth mean that the Canadian housing market is expected to continue to cool. This is overlooked in recent commentary that suggests further changes to mortgage regulations may be needed. A further tightening of regulations could negatively impact Canada’s softening housing market and consumer confidence,’ said Georges Pahud, president of CREA.
High sales activity late last year and earlier this year borrowed from sales this summer and will continue do so over the coming months, according to Gregory Klump, CREA’s chief economist.
‘This makes the return to more normal levels of sales activity look like a steep downward trend. The hangover from accelerated home purchases is likely to persist over the rest of the year. Although economic and job growth are expected to be tepid, they will continue to support housing markets,’ he added.
Source: http://www.nuwireinvestor.com/
Tuesday, September 14, 2010
(BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 35 per cent
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Vancouver, BC – September 14, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 35 per cent to 5,590 units in August compared to the same month last year.
On a seasonally adjusted basis, MLS® residential unit sales in the province increased 7 per cent in August from July 2010. The average MLS® residential price climbed 4 per cent to $487,804 in August compared to the same month last year.
Tuesday, August 31, 2010
Reality Check For China's Real Estate-The latest news out of China is bearish.
The latest news out of China is bearish. However, you have to be very careful of how you interpret the numbers. Those who want to present the bullish view will give you sales or price numbers for real estate for the first half or the last year. That disguises the plunge in sales since April.
For example, the year-over-years sales increase in China property prices is 11.4%. However, sales since April have plunged. Prices are always slow to follow initially, as speculators refuse to sell at prices lower than the peak price. They hope prices will come back. So, sales plunge. Condo sales in Beijing are down about 90% since April. Officially, sales in Shanghai, Nanjing and Hangzhou in the first half of the year were down 50%. The unofficial numbers should be worse.
Land prices in 103 cities for the first half were down 9%. Imagine! That includes the last part of the price surge in early 2010.
Economists in China now say that the government will stop tightening measures when prices have dropped 20–30%. That’s just what Japan said in 1990. At that time, I wrote that when bureaucrats aim for a 30% decline, they will get a decline of 50% or more, namely a disaster. Actually they got a 70% decline in real estate values over the past 20 years.
Special Offer: iShares MSCI Malaysia (EWM) is up 33% over the last 12 months. WisdomTree India Earnings (EPI) gained 24% during the same period. Which global ETFs should you add to your portfolio now? Click here for all recommended buys and sells in Chartwell ETF Global Advisor.
The chief economist for Nomura Securities (NMR) (a Japanese firm) in China says: “I believe such a price fall will have limited impact on China’s economy.” He may have said the same thing in Japan in 1990.
In China, car sales, which had been booming early this year, dropped a hefty 5.25% from May to June. In May, the year-over-year sales rise was 29.8% in May. China Daily reports that a leading Nissan dealer said that sales in June plunged 50% or more from the prior month. Sales people have nothing to do.
On August 2, The HSBC China Manufacturing Purchasing Managers Index was released, showing a decline to 49.4 from 50.4 in June. Anything below 50 shows contraction. This is the first time below 50 since the bottom of the last serious economic plunge in March 2009.
All the above confirms what we have been forecasting for several months: Government efforts to stop real estate inflation is resulting in the bursting of a huge speculative real estate bubble. If you want to know how it will work out, just go to Las Vegas or Miami.
Source: http://blogs.forbes.com/
For example, the year-over-years sales increase in China property prices is 11.4%. However, sales since April have plunged. Prices are always slow to follow initially, as speculators refuse to sell at prices lower than the peak price. They hope prices will come back. So, sales plunge. Condo sales in Beijing are down about 90% since April. Officially, sales in Shanghai, Nanjing and Hangzhou in the first half of the year were down 50%. The unofficial numbers should be worse.
Land prices in 103 cities for the first half were down 9%. Imagine! That includes the last part of the price surge in early 2010.
Economists in China now say that the government will stop tightening measures when prices have dropped 20–30%. That’s just what Japan said in 1990. At that time, I wrote that when bureaucrats aim for a 30% decline, they will get a decline of 50% or more, namely a disaster. Actually they got a 70% decline in real estate values over the past 20 years.
Special Offer: iShares MSCI Malaysia (EWM) is up 33% over the last 12 months. WisdomTree India Earnings (EPI) gained 24% during the same period. Which global ETFs should you add to your portfolio now? Click here for all recommended buys and sells in Chartwell ETF Global Advisor.
The chief economist for Nomura Securities (NMR) (a Japanese firm) in China says: “I believe such a price fall will have limited impact on China’s economy.” He may have said the same thing in Japan in 1990.
In China, car sales, which had been booming early this year, dropped a hefty 5.25% from May to June. In May, the year-over-year sales rise was 29.8% in May. China Daily reports that a leading Nissan dealer said that sales in June plunged 50% or more from the prior month. Sales people have nothing to do.
On August 2, The HSBC China Manufacturing Purchasing Managers Index was released, showing a decline to 49.4 from 50.4 in June. Anything below 50 shows contraction. This is the first time below 50 since the bottom of the last serious economic plunge in March 2009.
All the above confirms what we have been forecasting for several months: Government efforts to stop real estate inflation is resulting in the bursting of a huge speculative real estate bubble. If you want to know how it will work out, just go to Las Vegas or Miami.
Source: http://blogs.forbes.com/
Monday, August 30, 2010
Singapore Tightens Loan Limits to Cool Housing Market
By Shamim Adam and Joyce Koh - Aug 30, 2010 1:44 PM GMT+0800
Public housing complexes in Singapore
A Mass Rapid Transport train travels past public housing complexes in Singapore. Singapore joins Hong Kong and China in introducing measures this year to cool their property markets amid concerns that asset bubbles are forming as home prices surge. Photographer: Charles Pertwee/Bloomberg
A condominium development in Singapore
The Singapore Flyer operates near a condominium development in Singapore. Property prices have surged as Singapore's $182 billion economy rebounded from last year’s global slump to expand at a record 17.9 percent pace in the six months through June. Photographer: Munshi Ahmed/Bloomberg
Singapore's Prime Minister Lee Hsien Loong
Singapore's Prime Minister Lee Hsien Loong said more measures will be taken to cool the property market during the annual National Day Rally speech. Source: Ministry of Information, Communications and the Arts (MICA) via Bloomberg
Singapore increased down payments for second mortgages and imposed a stamp duty on property held for less than three years to curb speculation after home prices surged 38 percent in the second quarter.
Buyers who hold more than one mortgage can only borrow up to 70 percent of a property’s value, versus 80 percent previously, and must pay 10 percent in cash, up from 5 percent, the government said in a statement today. A seller’s stamp duty will apply to all residential units and land sold within three years of purchase, from one year. The changes take effect today.
Singapore joins Hong Kong and China in introducing measures this year to cool their property markets amid concerns that asset bubbles are forming as home prices surge. Hong Kong said this month it will tighten mortgage lending rules and increase the supply of land, while China’s restrictions include higher down payments and mortgage rates for multiple-home buyers.
“The government is taking a preemptive approach to make sure prices don’t get out of hand,” said Donald Han, a Singapore-based managing director at real estate adviser Cushman & Wakefield Inc. “Most of the measures are really targeting repeat buyers and speculators who buy and sell over the short term, which is now defined as within three years.”
Stocks, Bonds
CapitaLand Ltd., Southeast Asia’s biggest developer, dropped 1 percent to S$3.96 as of 1:15 p.m. in Singapore trading, while the benchmark Straits Times Index rose 0.6 percent. City Developments Ltd., the island’s second-largest developer by market value, fell 3.2 percent to S$11.58, headed for its biggest decline since February.
CapitaLand’s S$250 million ($185 million) in 4.35 percent notes due 2019 fell to 101.88 cents on the dollar from 102.48 cents on Aug. 27, the lowest in about two weeks, according to Standard Chartered Plc prices. City Developments’ S$90 million in 2.92 percent notes due 2014 fell to 101.68 cents, the lowest since Aug. 10, according to DBS Group Holdings Ltd.
Property prices have surged as Singapore’s $182 billion economy rebounded from last year’s global slump to expand at a record 17.9 percent pace in the six months through June.
The city-state has been attempting to rein in home prices since last year when the government barred interest-only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments still being built.
Previous Measures
The government in February said it will levy a seller’s stamp duty on all residential properties and land that are sold within one year from the date of purchase. The city-state then also lowered the loan-to-value limit to 80 percent from 90 percent for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore.
The island nation’s Prime Minister Lee Hsien Loong yesterday said previous measures failed to keep prices in check.
“We twice attempted to cool the property market, once last year and once in February this year, but the prices are still rising,” Lee said in a televised speech. “Our purpose is to make sure in the long term, Singaporeans can own their homes and afford it and it will be a gradually appreciating asset which will grow as Singapore grows.”
Singapore’s property market would form a bubble if the current momentum continued, Mah Bow Tan, Minister of National Development, said today after the measures.
Prices Surge
“The property market is currently very buoyant,” the government said in the latest statement. “The government’s objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals.”
Singapore private residential prices rose 38 percent in the second quarter from a year earlier, according to the Urban Redevelopment Authority.
The island led 36 markets around the world in property- value changes last quarter, gaining 34 percent from a year earlier, according to the Global Property Guide in its survey of house prices.
Price levels have exceeded the historical peak in the second quarter of 1996, the government said today.
The government expects gross domestic product to grow 13 percent to 15 percent this year after the nation in 2009 exited its worst recession since independence 45 years ago.
‘Severe Implications’
“Should economic growth falter and the market corrects, property buyers could face capital losses, with implications on their own finances and the economy as a whole,” the government said. “Moreover, the current low global interest rate environment will not continue indefinitely, and higher interest rates could have severe implications for buyers who have overextended themselves.”
Hong Kong Aug. 13 raised down payments for apartments costing HK$12 million ($1.54 million) or more to 40 percent, from 30 percent. The government has been accelerating its auctions of land for development in a bid to cool prices that have soared about 45 percent since the beginning of 2009, boosted by mortgage rates at the lowest in two decades and buying by mainland Chinese.
John Tsang, Hong Kong’s financial secretary, said home prices are approaching the level of 1997, the height of a previous bubble that was followed by a six-year slump.
China, South Korea
In China, the banking regulator has ordered stress tests for lenders to gauge the impact of home prices falling as much as 60 percent in the hardest-hit markets, a person with knowledge of the matter said. China’s property prices rose at the slowest pace in six months in July as the government cracked down on speculation to prevent asset bubbles.
China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for multiple-home purchases. It has also instructed lenders to halt third-home loans in areas with “excessive price gains.”
Taiwan in June introduced a 70 percent cap on loans for second homes, after low borrowing costs fueled lending and a jump in home prices. Central Bank Governor Perng Fai-nan wrote to the chairmen of all financial institutions on the island last month, asking them to take steps to prevent housing speculation.
Malaysia’s central bank has written to financial institutions to get their feedback on the possibility of capping the loan-to-value ratio for mortgages at 80 percent, the Edge weekly reported Aug. 28, citing unidentified people familiar with the matter.
South Korea may be an exception in Asia as the government steps up measures to spur the property market. The government yesterday said it will ease mortgage lending rules and extend tax breaks to encourage buyers back after home sales slumped to the lowest level in almost a year and a half.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net; Joyce Koh in Singapore at jkoh38@bloomberg.net
Public housing complexes in Singapore
A Mass Rapid Transport train travels past public housing complexes in Singapore. Singapore joins Hong Kong and China in introducing measures this year to cool their property markets amid concerns that asset bubbles are forming as home prices surge. Photographer: Charles Pertwee/Bloomberg
A condominium development in Singapore
The Singapore Flyer operates near a condominium development in Singapore. Property prices have surged as Singapore's $182 billion economy rebounded from last year’s global slump to expand at a record 17.9 percent pace in the six months through June. Photographer: Munshi Ahmed/Bloomberg
Singapore's Prime Minister Lee Hsien Loong
Singapore's Prime Minister Lee Hsien Loong said more measures will be taken to cool the property market during the annual National Day Rally speech. Source: Ministry of Information, Communications and the Arts (MICA) via Bloomberg
Singapore increased down payments for second mortgages and imposed a stamp duty on property held for less than three years to curb speculation after home prices surged 38 percent in the second quarter.
Buyers who hold more than one mortgage can only borrow up to 70 percent of a property’s value, versus 80 percent previously, and must pay 10 percent in cash, up from 5 percent, the government said in a statement today. A seller’s stamp duty will apply to all residential units and land sold within three years of purchase, from one year. The changes take effect today.
Singapore joins Hong Kong and China in introducing measures this year to cool their property markets amid concerns that asset bubbles are forming as home prices surge. Hong Kong said this month it will tighten mortgage lending rules and increase the supply of land, while China’s restrictions include higher down payments and mortgage rates for multiple-home buyers.
“The government is taking a preemptive approach to make sure prices don’t get out of hand,” said Donald Han, a Singapore-based managing director at real estate adviser Cushman & Wakefield Inc. “Most of the measures are really targeting repeat buyers and speculators who buy and sell over the short term, which is now defined as within three years.”
Stocks, Bonds
CapitaLand Ltd., Southeast Asia’s biggest developer, dropped 1 percent to S$3.96 as of 1:15 p.m. in Singapore trading, while the benchmark Straits Times Index rose 0.6 percent. City Developments Ltd., the island’s second-largest developer by market value, fell 3.2 percent to S$11.58, headed for its biggest decline since February.
CapitaLand’s S$250 million ($185 million) in 4.35 percent notes due 2019 fell to 101.88 cents on the dollar from 102.48 cents on Aug. 27, the lowest in about two weeks, according to Standard Chartered Plc prices. City Developments’ S$90 million in 2.92 percent notes due 2014 fell to 101.68 cents, the lowest since Aug. 10, according to DBS Group Holdings Ltd.
Property prices have surged as Singapore’s $182 billion economy rebounded from last year’s global slump to expand at a record 17.9 percent pace in the six months through June.
The city-state has been attempting to rein in home prices since last year when the government barred interest-only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments still being built.
Previous Measures
The government in February said it will levy a seller’s stamp duty on all residential properties and land that are sold within one year from the date of purchase. The city-state then also lowered the loan-to-value limit to 80 percent from 90 percent for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore.
The island nation’s Prime Minister Lee Hsien Loong yesterday said previous measures failed to keep prices in check.
“We twice attempted to cool the property market, once last year and once in February this year, but the prices are still rising,” Lee said in a televised speech. “Our purpose is to make sure in the long term, Singaporeans can own their homes and afford it and it will be a gradually appreciating asset which will grow as Singapore grows.”
Singapore’s property market would form a bubble if the current momentum continued, Mah Bow Tan, Minister of National Development, said today after the measures.
Prices Surge
“The property market is currently very buoyant,” the government said in the latest statement. “The government’s objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals.”
Singapore private residential prices rose 38 percent in the second quarter from a year earlier, according to the Urban Redevelopment Authority.
The island led 36 markets around the world in property- value changes last quarter, gaining 34 percent from a year earlier, according to the Global Property Guide in its survey of house prices.
Price levels have exceeded the historical peak in the second quarter of 1996, the government said today.
The government expects gross domestic product to grow 13 percent to 15 percent this year after the nation in 2009 exited its worst recession since independence 45 years ago.
‘Severe Implications’
“Should economic growth falter and the market corrects, property buyers could face capital losses, with implications on their own finances and the economy as a whole,” the government said. “Moreover, the current low global interest rate environment will not continue indefinitely, and higher interest rates could have severe implications for buyers who have overextended themselves.”
Hong Kong Aug. 13 raised down payments for apartments costing HK$12 million ($1.54 million) or more to 40 percent, from 30 percent. The government has been accelerating its auctions of land for development in a bid to cool prices that have soared about 45 percent since the beginning of 2009, boosted by mortgage rates at the lowest in two decades and buying by mainland Chinese.
John Tsang, Hong Kong’s financial secretary, said home prices are approaching the level of 1997, the height of a previous bubble that was followed by a six-year slump.
China, South Korea
In China, the banking regulator has ordered stress tests for lenders to gauge the impact of home prices falling as much as 60 percent in the hardest-hit markets, a person with knowledge of the matter said. China’s property prices rose at the slowest pace in six months in July as the government cracked down on speculation to prevent asset bubbles.
China has restricted pre-sales by developers, curbed loans for third-home purchases, raised minimum mortgage rates and tightened down-payment requirements for multiple-home purchases. It has also instructed lenders to halt third-home loans in areas with “excessive price gains.”
Taiwan in June introduced a 70 percent cap on loans for second homes, after low borrowing costs fueled lending and a jump in home prices. Central Bank Governor Perng Fai-nan wrote to the chairmen of all financial institutions on the island last month, asking them to take steps to prevent housing speculation.
Malaysia’s central bank has written to financial institutions to get their feedback on the possibility of capping the loan-to-value ratio for mortgages at 80 percent, the Edge weekly reported Aug. 28, citing unidentified people familiar with the matter.
South Korea may be an exception in Asia as the government steps up measures to spur the property market. The government yesterday said it will ease mortgage lending rules and extend tax breaks to encourage buyers back after home sales slumped to the lowest level in almost a year and a half.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net; Joyce Koh in Singapore at jkoh38@bloomberg.net
U.K. House Prices Drop the Most in 16 Months
, Hometrack Says
By Craig Stirling - Aug 30, 2010 7:01 AM GMT+0800
http://www.bloomberg.com/news/2010-08-29/u-k-house-prices-fall-most-in-16-months-as-market-hits-repricing-phase.html
The average cost of a home fell 0.3 percent from the previous month to 158,200 pounds ($246,000), the London-based property researcher said in an e-mailed statement today. Photographer: Colin McPherson/Bloomberg
U.K. home values dropped in August by the most in 16 months as the housing market endured a “modest re-pricing” that is likely to last as long as a year, Hometrack Ltd. said.
The average cost of a home fell 0.3 percent from the previous month to 158,200 pounds ($246,000), the London-based property researcher said in an e-mailed statement today. That was the biggest drop since April 2009. Hometrack’s index is based on a survey of 5,100 real-estate agents and surveyors.
The report adds to mounting evidence that the housing market is weakening, and economists predict data tomorrow may show that banks granted the fewest mortgages in more than a year last month. Britain’s economy “remains fragile” and officials may need to expand their emergency stimulus to aid the recovery, Bank of England Deputy Governor Charles Bean said on Aug. 28.
“The housing market is in the process of a modest re- pricing that is likely to run for the next six to 12 months,” Richard Donnell, Hometrack’s director of research, said in the statement. There is also “growing weakness on the demand side, a weakness which represents more than just a seasonal blip.”
From a year earlier, prices rose 1.5 percent, the least in five months, Hometrack said. Demand for homes, measured by the change in new buyers registering with real-estate agents, fell for a second month, dropping by 2.2 percent.
The supply of homes “has improved markedly and this has reduced the support for house prices provided by the scarcity of housing for sale over 2009 and early 2010,” Donnell said. Prices fell in every region apart from Wales, where they were unchanged, the report showed.
“The deleveraging process is incomplete, the recovery remains fragile and a considerable margin of spare capacity is yet to be worked off,” Bean said at a conference in Jackson Hole, Wyoming. “Further policy action may yet be necessary.”
U.K. banks probably approved 46,500 mortgages in July, the least in 14 months, according to the median forecast of 19 economists in a Bloomberg News survey. The Bank of England will release that data tomorrow.
To contact the reporter on this story: Craig Stirling in London at cstirling1@bloomberg.net
By Craig Stirling - Aug 30, 2010 7:01 AM GMT+0800
http://www.bloomberg.com/news/2010-08-29/u-k-house-prices-fall-most-in-16-months-as-market-hits-repricing-phase.html
The average cost of a home fell 0.3 percent from the previous month to 158,200 pounds ($246,000), the London-based property researcher said in an e-mailed statement today. Photographer: Colin McPherson/Bloomberg
U.K. home values dropped in August by the most in 16 months as the housing market endured a “modest re-pricing” that is likely to last as long as a year, Hometrack Ltd. said.
The average cost of a home fell 0.3 percent from the previous month to 158,200 pounds ($246,000), the London-based property researcher said in an e-mailed statement today. That was the biggest drop since April 2009. Hometrack’s index is based on a survey of 5,100 real-estate agents and surveyors.
The report adds to mounting evidence that the housing market is weakening, and economists predict data tomorrow may show that banks granted the fewest mortgages in more than a year last month. Britain’s economy “remains fragile” and officials may need to expand their emergency stimulus to aid the recovery, Bank of England Deputy Governor Charles Bean said on Aug. 28.
“The housing market is in the process of a modest re- pricing that is likely to run for the next six to 12 months,” Richard Donnell, Hometrack’s director of research, said in the statement. There is also “growing weakness on the demand side, a weakness which represents more than just a seasonal blip.”
From a year earlier, prices rose 1.5 percent, the least in five months, Hometrack said. Demand for homes, measured by the change in new buyers registering with real-estate agents, fell for a second month, dropping by 2.2 percent.
The supply of homes “has improved markedly and this has reduced the support for house prices provided by the scarcity of housing for sale over 2009 and early 2010,” Donnell said. Prices fell in every region apart from Wales, where they were unchanged, the report showed.
“The deleveraging process is incomplete, the recovery remains fragile and a considerable margin of spare capacity is yet to be worked off,” Bean said at a conference in Jackson Hole, Wyoming. “Further policy action may yet be necessary.”
U.K. banks probably approved 46,500 mortgages in July, the least in 14 months, according to the median forecast of 19 economists in a Bloomberg News survey. The Bank of England will release that data tomorrow.
To contact the reporter on this story: Craig Stirling in London at cstirling1@bloomberg.net
Monday, August 9, 2010
Last 12 months saw Oz property prices soar by almost 20% but figures also expect a slowdown
Residential property prices in major Australian cities have increased by almost 20% in the last 12 months, according to the latest figures to be released. Â The data from the Australian Bureau of Statistics shows average quarterly growth to June of 3.1% and an annual increase of 18.4%.
The data shows growth of almost double that of the private sector RP Data/Rismark index released last week which showed national city dwelling values up 10.5% in the same period.
In Melbourne house prices increased more than 24% in the last year while in Sydney they rose 21%, according to the ABC figures. Canberra saw a 19.6% price increase, Darwin 14.6%, Perth 13%, Adelaide 11.l6%, Hobart 10.8% and Brisbane 8.5%.
READ MORE http://odessa.emp-marketing.com/link/4001d4deb84960a46967e0676a1917081e1f4f1e665cdca813f84b0890f409f6d33becd29da7580ea1e80650579e467b.ask
The data shows growth of almost double that of the private sector RP Data/Rismark index released last week which showed national city dwelling values up 10.5% in the same period.
In Melbourne house prices increased more than 24% in the last year while in Sydney they rose 21%, according to the ABC figures. Canberra saw a 19.6% price increase, Darwin 14.6%, Perth 13%, Adelaide 11.l6%, Hobart 10.8% and Brisbane 8.5%.
READ MORE http://odessa.emp-marketing.com/link/4001d4deb84960a46967e0676a1917081e1f4f1e665cdca813f84b0890f409f6d33becd29da7580ea1e80650579e467b.ask
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